Postage Rates Take a Historic Fall!

Postage reduction dude with scissors

Today direct mailers are welcoming a historic event. For the first time in 97 years, postage rates are going down! The last time postage dropped was in July 1919 when Congress dropped first-class prices from 3 cents to 2 cents after the end of World War I.

Of course, direct marketers are thrilled about the extra money in their budgets. For a one million piece standard class mailing, the reduction results in approximately $10,000 in savings!

Of course, the USPS is definitely NOT happy about the reduction. The Post Office is still in poor financial shape due to the Great Recession when its sales fell by $7 billion in 2009 alone. As a result, in 2014 a 4.3% exigent surcharge was implemented to raise $4.6 billion in revenue. The price hike was set to last only two years.

Effective Sunday April 10th, postage rates decreased by an average of 4.1%. (The post office gets to keep one cent of the decrease to keep up with inflation.) Here is a summary of the postage changes:

  • Retail first-class stamps are going from 49 to 47 cents.
  • Postcard stamps will drop from 35 to 34 cents.
  • Standard class presort mail is decreasing an average of 1 cent per piece.
  • First-class presort rates are decreasing from 1 ½ to 2 cents per piece.

For a handy chart with the new rates, download J&Q’s Direct Mailer’s Deskside Companion. It provides first-class and standard presort rates, as well as other mailing reference information.

Direct marketers – enjoy the additional cash in your budgets!

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